This comes after the Fed decision and Powell’s press conference yesterday, in which he said that December is “not a foregone conclusion”. I mean, that is what you would expect from Powell at this stage. He can’t pre-commit to anything, that especially amid a US government shutdown that has plagued economic data releases for a month already.
Nomura had previously forecast the Fed to cut again by 25 bps in December. As things stand, Fed funds futures are now seeing ~72% odds of another rate cut by year-end but that is down from ~91% overnight before the Fed.
